Bank Leumi Le-Israel Ltd settled the the tax-evasion allegations by agreeing to pay $270m to the US Department of Justice (DoJ) and $130m to the New York’s Department of Financial Services. Of the $270m, $157 million represents a penalty for US taxpayer accounts held at Leumi Private Bank in Switzerland according to the DoJ. Under the terms of the DoJ settlement, Bank Leumi agreed to disclose 1,500 of its US-related accounts. The Wall Street Journal said that it also ‘agreed to terminate several senior employees as part of the New York regulator’s settlement’.
According to court documents, the bank entered into a deferred prosecution agreement for two years, says Bloomberg, in which it admitted to the charges of unlawfully having helped clients hide assets from the Internal Revenue Service (IRS) without pleading guilty. Hence it avoids prosecution.